Cement Sector - Coal India hikes coal prices by 30%: Emkay

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Cement Sector

Coal India hikes coal prices by 30%

n     Coal India hikes coal prices for market drive sectors by 30% - Cost to increase 4-5/bag 

n     30% hike significantly higher than our estimates of 11% - Earnings impact of 2.6% - 6.6% on Emkay universe – UTCL, India Cement impacted the most

n     Excise duty hike might make things difficult for the sector. Recent price hikes could leave little room to pass cost push

n     Sector headwinds intensify as price hikes just covering cost pressures, no visible signs on incremental addition to EBIDTA. Remain NEUTRAL on the sector

Co. Name	Reco	TP (Rs)
ACC	Accumulate	1,035
Ambuja Cements	Hold	130
Grasim Industries	Accumulate	2,730
Ultratech Cement	Reduce	1,040
India Cements	Hold	98
Madras Cements	Accumulate	102
Orient Paper	Buy	77
Shree Cements	Accumulate	1,960